What factors need to be considered in the choice of warehousing outsourcing?

Nowadays, many e-commerce sellers prefer order fulfillment center, but what factors need to be considered when choosing your new warehousing partner? Here we have listed some major factors for your reference.

  • Charging Standard

The charge standard of fulfillment center can be divided into two categories:

The first category is to carry out the charging standard according to the actual operation volume (warehouse receiving, delivery, storage, return, etc.). And the other type is based on the cost of resource consumption and development contract (the total area of the application warehouse, the total number of staff, equipment depreciation, consumables, etc.)

  • Process Control and Management Data

It is necessary to carefully investigate the process optimization documents of your potential warehousing partner to evaluate its standardization and work ability. For example, you can obtain a general idea of them through website visiting. You can also pretend to be a new customer to test them. Generally speaking, the will show you some files about their enterprise profile and fulfillment performance, which cover their process control and management methods.

  • Execution Capabilities

In addition to the marketing plan, the execution ability is also a very critical part. It is necessary to fully grasp the work flow of third-party warehouse and outsourcing enterprises, especially the steps at the level of purchase, marketing, accounting supervision, etc. A qualified warehouse should work out the practical plan.

  • Humanized Marketing Plan

Customized business planning of a Chinese order fulfillment center is an indelible aid. You can evaluate its professional skills and value according to their marketing plan. Furthermore, a fulfillment center with strong market sensitivity will create a more valuable plan, which means they can provide more benefits for you.

In a nutshell, China fulfillment services is appreciated by more and more e-commerce companies, especially the Amazon and Shopify seller. Therefore, detailed investigation is a wise choice for everybody who wants to find an ideal expert of drop shipping, packing, china sourcing, third party logistics, etc.

Assemble-to-order with Planned Orders

Assemble-to-order with planned orders is particularly useful:

If production control is managed using production orders (see Special Settings for Projects) but you do not want to create the production order along with the sales order. You can use the planned order to fine-tune planning and then convert it into a production order at a later date.
If production is controlled using Repetitive Manufacturing. The planned order is then the run schedule quantity which you can plan using the planning and control tools provided by Repetitive Manufacturing. In this procedure, the goods receipt for the material can also be posted with reference to the sales order number. Thus, the costs can also be directly assigned to the sales order even in Repetitive Manufacturing.
Assemble-to-order with Repetitive Manufacturing

Use assemble-to-order with Repetitive Manufacturing if several of the following points apply to your situation:

Production of the finished product is carried out in clear and simple steps.
The assembly is produced in a constant flow over the production lines.
Simple routings are used, or assembly can be carried out without routings.
The components can be staged anonymously at the production lines. The components are procured, for example, with KANBAN using consumption-based planning, or with the planning strategy “subassembly planning”.
You want to reduce the effort required for production control and backflushing.
Sample Scenario for Assemble-to-order with Repetitive Manufacturing

The production process is kept as simple as possible. There are only a limited number of production levels involved in producing the product. The number of components is relatively low, however, it is quite possible to produce a large number of finished products due to configuration options.
The components required for final assembly are selected via the configuration in the sales order and are staged at the production line anonymously. You can use the assembly order to carry out an availability check for the selected components. Components that are always readily available are excluded from the availability check by setting the appropriate indicator in the material master record. (order fulfillment center
The finished product is assembled without a routing and the operations are similar. The planning table in Repetitive Manufacturing provides the planner with an overview of the production rates. Here, the planner can also check capacities for the production lines and distribute the ordered quantities to the production lines with available capacity.
When production is complete, the goods receipt for the finished product is posted with reference to the sales order number – a special function exists in Repetitive Manufacturing for this. Once the goods receipt is posted, the goods are withdrawn for the specific sales order and the assembly order is deleted.
For the scenario described above, you can also work without using the planning functions of Repetitive Manufacturing. In this case, capacity planning is not carried out from the planning table in Repetitive Manufacturing, but instead, using the capacity leveling functions in capacity planning. However, you can still use the backflushing functions in Repetitive Manufacturing.